Total Revenue

2.3% increase (from $2,644M to $2,706M)

The overall revenue increase is modest, reflecting continued organic growth and stable market conditions. The higher revenue is largely influenced by gains in the Transit segment and a recovery from previous period challenges, even as the Freight segment remained nearly flat. " " " "

Freight Segment

Nearly flat (from $1,932M to $1,919M)

Despite strong performance in its Services sub-segment, other components within Freight, such as equipment and components, showed little change, keeping overall segment revenue nearly unchanged. This near-flat performance builds on a mixed performance from the previous period where gains in some areas offset declines in others. " " "

Freight – Services Sub-segment

Approximately +57% increase (from $497M to $781M)

The Services sub-segment experienced dramatic growth driven by higher deliveries of locomotive modernizations, engine overhauls, and increased parts sales. This robust increase contrasts with the previous period and indicates targeted initiatives and growing demand in freight maintenance and upgrade services. " " "

Transit Segment

About 7% increase (from $734M to $787M)

The Transit segment saw solid growth, supported by increased demand for both OEM and aftermarket products and investments in infrastructure. This improvement reflects a continuation of favorable trends seen in prior periods with strategic efforts to capture expansion in urban and fleet modernization markets. " "

Geographic Revenue

Consolidated at $2,706M

There is no detailed breakdown available, but the consolidated revenue suggests balanced performance across regions. External market dynamics and uniform company initiatives have maintained overall stability in geographic revenue despite regional differences in earlier periods. " "

Sales

FY 2025

no prior guidance [N/A]

$11.1 billion at midpoint, 6.5% increase "

no prior guidance

Adjusted EPS

FY 2025

$8.35 to $8.95, 14% increase "

$8.55 to $9.15, 17% increase "

raised

International Growth and Global Expansion

Q1 2025 highlighted a strong international pipeline with growth across regions such as Africa, Asia, and CIS. " " Q4 2024 noted a robust international backlog and significant orders in core markets. " " Q3 2024 emphasized sustained demand in key international markets. " "

Q2 2025 emphasized significant international activity in core regions (Africa, Asia, Brazil, CIS) with a 12‐month backlog exceeding $8 billion and strategic acquisitions bolstering growth. " "

**Consistently positive with an enhanced focus on strategic acquisitions and a robust pipeline in Q2 2025. " " **

Digital Expansion and Transformation

Q1 2025 emphasized organic digital growth and investments in digital intelligence. " " Q4 2024 reported record digital orders and recurring revenue targets. " " Q3 2024 detailed rapid digital growth with a shift toward recurring revenue streams. " "

Q2 2025 highlighted strategic acquisitions—adding nearly $600 million in annual sales—and entry into railcar telematics, nearly doubling its digital business footprint. "

**Continued emphasis on digital transformation with increased acquisition-led expansion. " **

M&A Activity and Integration Risks

Q1 2025 described the acquisition of Evident’s Inspection Technologies and outlined Integration 3.0 initiatives to drive savings. " " Q4 2024 focused on the Evident acquisition and progress in Integration 2.0/3.0 to streamline operations. " " Q3 2024 reported a robust M&A pipeline with effective integration savings. " "

Q2 2025 reported the completion of three key acquisitions with a $3.5 billion investment, expected immediate shareholder value, and clear integration risk management delivering synergies. " "

**Ongoing robust M&A activity with structured integration risk mitigation continuing across periods. " " **

Tariff Uncertainty and Regulatory Environment

Q1 2025 incorporated tariffs into guidance and detailed proactive management of tariff impacts. " " Q4 2024 described a fluid tariff environment managed effectively amid volatility. " Q3 2024 had no mention.

Q2 2025 stressed managing tariff-related risks through cost and pricing actions and noted regulatory progress, including collaboration with the FRA on rail safety initiatives. " " "

**Steady handling of tariff challenges with continuous improvements in mitigation strategies and regulatory engagement. " " **

Operational Efficiency and Cost Management

Q1 2025 focused on proactive cost controls and integration savings through initiatives like Integration 2.0/3.0. " " Q4 2024 emphasized margin expansion via cost management and portfolio optimization. " " Q3 2024 highlighted integration savings and productivity improvements driving improved margins. " "

Q2 2025 reported strong margin expansion driven by favorable business mix, improved gross margins, and ongoing integration savings, benefiting both Freight and Transit segments. " " "

**Consistent focus with measurable improvements in operational efficiency and cost management continuing into Q2 2025. " " **

Strong Order Backlog and Pipeline Visibility

Q1 2025 reported a $8.2 billion 12‐month backlog with key international orders. " " Q4 2024 noted a $7.7 billion backlog with effective pipeline conversion. " " Q3 2024 described a robust and growing backlog across segments. " "

Q2 2025 reiterated the 12‐month backlog at $8.2 billion and highlighted an even stronger, diversified international pipeline supporting visibility into future growth. " " "

**Consistently robust order backlog with a slight improvement in pipeline visibility in Q2 2025. " " **

North American Market Weakness vs. International Performance

Q1 2025 detailed North American market softness with international markets outperforming. " " Q4 2024 indicated muted North American demand offset by strong international orders. " " Q3 2024 confirmed North American weakness relative to robust international performance. " "

Q2 2025 pointed to continued North American market challenges (e.g. reduced railcar builds) alongside robust international growth and strong pipeline dynamics. " " "

**A persistent divergence, with international markets consistently outperforming North America. " " **

Supply Chain and Revenue Timing Concerns

Q1 2025 mentioned revenue mix and timing differences affecting margins. " " Q4 2024 discussed the impact of production scheduling on revenue timing and steady backlog coverage. " " Q3 2024 noted timing effects due to product mix, without major supply chain issues. "

Q2 2025 identified a supply part issue that delayed approximately $60 million in revenue, which has been resolved, with expectations for stronger second-half revenue growth. "

**Earlier challenges in revenue timing have been addressed in Q2 2025, leading to improved outlook for later quarters. " **

Innovative Product Offerings and Technological Advancements

Q1 2025 discussed innovations in new locomotives and digital technologies aimed at improved fuel efficiency and reliability. " " " Q4 2024 highlighted the evolution fleet testing alongside advanced digital intelligence growth. " " " Q3 2024 emphasized rapid digital innovation, decarbonization solutions, and strategic locomotive orders. " " "

Q2 2025 focused on strategic acquisitions that enhance technological capabilities, expand digital telematics, and support safety improvements, reinforcing its innovative product offerings. " " "

**A steady commitment to innovation, with an increased emphasis on acquisition-led technology integration in Q2 2025. " " **

Pricing Pass-Through Challenges and CapEx Restraint

Q1 2025 featured detailed discussions on pricing actions, tariff pass-through, and USMCA adjustments. " " " Q4 2024 discussed a pricing strategy based on value with built-in price escalators. " Q3 2024 had minimal focus on this topic.

No specific mention of pricing pass-through or CapEx restraint was made in Q2 2025.

A reduced focus in Q2 2025 suggests that earlier pricing challenges may have been resolved or have become less of a concern [No citations].